Chevron 1Q profits plunge on lower oil production, prices

Chevron Corp. reported earnings of $4.5 billion for this year’s first quarter compared with $6.2 billion for first-quarter 2013. Revenues in the first quarter were $51 billion, down from $54 billion during the same quarter a year ago.

The plunge in first-quarter profits was primarily due to lower prices and volumes for crude oil, said Chairman and Chief Executive Officer John Watson.

“Crude prices were tempered by global economic factors, while our current year production volumes were affected by weather-related, unplanned downtime, particularly in Kazakhstan,” he said.

The company’s worldwide net oil-equivalent production was 2.59 million b/d in this year’s first quarter compared with 2.65 million b/d in first-quarter 2013.

In the US, net liquids component of oil-equivalent production decreased 4% to 438,000 b/d in this year’s first quarter, while net natural gas production decreased 3% to 1.21 bcfd. Internationally, net liquids component of oil-equivalent production decreased 2% to 1.28 million b/d, while net natural gas production was essentially unchanged at 4.04 bcfd.

The company’s average sales price of crude oil and natural gas liquids were $91/bbl in the US and $99/bbl internationally in this year’s first quarter, respectively down from $94/bbl and $102/bbl in the same quarter a year ago. The US average sales price of natural gas was $4.77/Mcf, compared with $3.11/Mcf in the first quarter 2013, while the international price was $6.02/Mcf vs. $6.07/Mcf in last year’s first quarter.

On the downstream side, US operations earned $422 million in this year’s first quarter compared with earnings of $135 million a year earlier, mainly due to higher margins on refined product sales and a gain on the sale of an interest in pipeline affiliate.

International downstream operations earned $288 million in this year’s first quarter compared with $566 million for the same period in 2013, mainly due to lower margins on refined product sales and exchange rate effect.

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